The European Union sets its sights high on ambitions with China (22/06/2016)

23.06.2016

European Commission - Press release

Brussels, 22 June 2016

The High Representative of the Union for Foreign Affairs and Security Policy and the European Commission today adopted a Joint Communication,
entitled "Elements for a new EU strategy on China", which maps out the
European Union's relationship with China for the next five years.

Federica Mogherini, the High Representative/Vice-President, said: "The
European Union and China already cooperate on so much: we work together
on the global and political issues of our times, such as Iran, Syria,
Afghanistan, migration and climate change. But we can and must do more
to connect the European Union and China. Our citizens, industries, and
organisations can all benefit from a closer, improved, and
better-defined EU-China relationship based on shared responsibility.
The Joint Communication that we have adopted today will, I am sure, enable our relationship to fulfil its clear potential."

The Joint Communication
identifies major opportunities for the EU's relationship with China, in
particular with the aim of creating jobs and growth in Europe as well
as vigorously promoting a greater opening up of the Chinese market to
European business, thus contributing to the first priority of President
Juncker's Commission.

Such opportunities include
concluding an ambitious and comprehensive agreement on investment, a
Chinese contribution to the Investment Plan for Europe (*), joint
research and innovation activities, as well as connecting the Eurasian
continent via a physical and digital network through which trade,
investment and people-to-people contact can flow.

Looking further ahead,
broader ambitions such as a deep and comprehensive Free Trade Agreement
can be considered once an ambitious investment agreement between the two
sides has been concluded and reforms that level the playing field for
domestic and foreign companies have been implemented. In this regard,
China must make significant, time-bound and verifiable cuts in
industrial over-capacity, notably in the steel sector, to prevent
negative consequences from unfair competition. Further strengthening the
effectiveness of the EU's Trade Defence Instruments, notably through
the swift adoption of the Commission's Trade Defence Instruments
modernisation proposal of April 2013, is key. The EU will continue to
support China's economic and social reform programme through its many
dialogues with China so that the country can reap the full benefits of
market-led reform, including by eliminating state-induced economic
distortions and reforming state-owned enterprises.

The Joint Communication
also highlights opportunities for closer cooperation and partnership
between the EU and China in the fields of foreign and security policy.
Building on the positive experience of the Iran nuclear talks, the
European Union and China should work more closely together in order to
resolve international conflicts and foreign policy priorities both
bilaterally and in multilateral contexts such as the UN system and in
the G20. Issues of a global nature like migration, international
development assistance, the environment and fighting climate change can
only be resolved through a global response, and for this reason a
collaborative EU-China relationship is crucial.

The EU's engagement with
China will be principled, practical and pragmatic, staying true to its
interests and values, in particular adherence to international rules and
norms, and respect for human rights. The EU should continue to work
cohesively and effectively as a coherent block to achieve ambitious
objectives on behalf of European citizens.

The Joint Communication will now be presented to the Council and to the European Parliament.

Background:

The European Commission's
last Communication on China in 2006 was adopted a decade ago. The EU and
China have both undergone considerable changes since then. China is
becoming more present in all regions of the world, economically and
politically. This new reality calls for a fresh EU narrative that
recognises the need to deal with these new developments. The EU's new
strategy therefore sets out to promote EU interests and underline EU
values in its relationship with China for the next five years.